Ionut Tintaru

INTRODUCTION
Royal Unibrew is a brewing and Beverage Company, founded in 1889 through
the merger of the breweries Faxe, Ceres and Thor under the name Bryggerigruppen.
Odense-based Albani merged with the company in 2000 in 2005, the name of the
company was changed to Royal Unibrew. This is a brewing and Beverage Company
headquartered in Faxe, Denmark. They produce, market, sell and distribute quality
beverages with focus on branded products within beer, malt beverages and soft drinks
as well as cider and long drinks.
Royal Unibrews main markets are Denmark, Finland, Italy and Germany as well
as Latvia, Lithuania and Estonia. Also included are the markets from Asia, North
America and Africa.
Harboe is a worldwide beverage producer with production facilities in 3 countries
and business activities in more than 90 markets worldwide. Its located in Sklskr,
Denmark and was founded in 1883. Harboe is a corporation with a strong international
platform. They manufacture and market beverages and malt-based ingredients in more
than 90 markets worldwide.

ANALISYS
When analyzing data we can use the income statement and balance sheet to see
how the company is doing. They are both used to make decisions. Furthermore the
income stamen and balance sheet show different things. Income stamen shows us the
companys financial performance by evaluating the revenues and expenses, incurred
through both operating and non-operating activities. Whereas the balance sheet shows
us the assets, liabilities and owners equity in cash amount. Furthermore the income
stamen and balance sheet can be used to work out ratios which will help us see how
each company is doing and determine what has cause the changes.
The two companies that we focus on are in opposite polls to one another. The
first company that we are talking about is Royal Unibrew, the second biggest brewing
company in Denmark and the other is Harboes Bryggeri A/S, a family-owned business
which has a constant path on the market stock. We choose to take a look into the
market stock and as I told you the difference between the companies are visible.

ROCE, PMR, ROE for Royal Unibrew

30.0%
25.0%

Return on capital
employed

20.0%

Profit margin

15.0%

Return of equity

10.0%
5.0%
0.0%

2010 2011 2012 2013 2014

Now we will compare the

return on capital employment, profit margin and return on equity and we will use a chart,
because it is easier to see the difference between the two companies.

ROCE, PMR, ROE for Harboe

6.0%
5.0%
4.0%

Return on capital
employed

3.0%

Profit margin

2.0%

Return of equity

1.0%
0.0%

Over the years there have been small changes for royal unibrew however there
have been big changes for harbore. Return on capital employed shows how well a
business can make a profit from its capital employed and determines if it is a good
investment or not. Here we can see that Royal Unibrew has higher return on capital
employed. This shows us that it is better to invest in Royal Uninbrew than Habore.
ROCE shows us that the company Harboe is in constant grow, but not even near Royal
Unibrew, even though they had a decreasing in the second year, but growing back in
the third one. The drop in ROCE in 12/13 for Harbore could be due to the fact that the
company made less net revenue that year however in 13/14 the Roce was so low
because the production cost increased. Profit margin shows what percentage of sales
the company can keep in earnings the bar chart allows us to see that Royal Unibrew is
doing better. Return on equity shows the amount of net income returned form the capital
invested by the shareholders. This is helpful when deciding if you should invest in a
chosen company. Again we can see that it is better to invest in Royal Unibrew because
it will mean that the shareholder will get back more money.

Index income statment- Harboe

140.00%
120.00%

Index in turnover

100.00%

Index in sales and

distribution costs

80.00%

Index in
administration
costs

60.00%
40.00%
20.00%
0.00%

ratios

there

is

not

big

difference

until

When comparing these

the year 2014. Index

Index income statment- Royal Unibrew

180.0
160.0

Index in turnover

140.0

Index in sales and

distribution costs

120.0
100.0

Index in
administration
costs

80.0
60.0
40.0
20.0
0.0

2010 2011 2012 2013 2014

turnover
measure
the
development of turnover, here it shows us if the turnover has changed based on the first
year. From the bar chart we can see that Royal Unibrew has improved in the last two
years this is good because it mean that they are making more profit now compared to
before this may be due to the immaterial assets of the company increasing- the
company is now one of the most known brands in Denmark. While Harboes index
turnover actually has started to drop this means that they are making less profit now
compared to the first year. This is not good if you want to invest in the company
because it may mean that the turnover may decrease even more therefore they wont
receive as much back in the future.

CONCLUSION

In conclusion we have decided that the best option is to invest in is Royal

Unibrew. After analyzing the numbers we can say that Royal Unibrew will be the best
option this is because they make more sales due to the fact that their company is more
known. As a result more people are likely to buy it and that means we can earn back the
money we invested faster.
Royal unibrew tend to expand even more in revenue in the near future we can
see that in the bar chart making it a safer option to invest in. whereas Harboe has
actually had a decrease in PMR this is showing us that they are no longer making as
much profit.
Royal Unibrew it is the leader of the market share so its clear that we can earn
money. However this also means that the stock price is higher making it a risky
investment because stock can fall as it has in previous year meaning that you will get
less return on investment. On the other hand although cheaper, with Harboe we will be
getting back less money.
Royal Unibrew has less fixed costs compared to what each company makes from
their sales. As a result of this they have more to work with making it a safer option to
invest in because they have more money to work with incase of an emergency.
Royal Unibrew has expanded in more countries that Harboe this mean it has a
bigger market share makes a bigger profit than Harboe. We can see this is the bar chart
we have made. This is good because it means more money invstors will receive from
their investments.
Finally we believe that the best option for us is Royal Unibrew.